Executive Summary

Q1 2025 revenue of $1.092B and Adjusted EBITDA of $167.3M were ahead of internal expectations; non-GAAP diluted EPS was $0.11, while GAAP diluted EPS was $0.01 . Versus S&P Global consensus, revenue beat by ~$15M and non-GAAP EPS beat by ~$0.17 per share (consensus -$0.0648; see Estimates Context)*.
Topgolf same-venue sales (SVS) declined 12% (in line with guidance); management launched a value repositioning (Sunday Funday, Topgolf Nights, shorter reservations) that is lifting traffic but reducing spend per visit near term .
FY25 consolidated revenue ($4.0–$4.185B) and Adjusted EBITDA ($415–$505M) guidance were maintained, but Topgolf revenue guidance was lowered to $1.680–$1.790B (from $1.725–$1.835B) and Topgolf SVS guidance cut to down 6–12% (from down mid-single digits); Topgolf Adj. EBITDA guidance held at $240–$300M .
Strategic catalysts: agreement to sell Jack Wolfskin for $290M cash (expected late Q2/early Q3), and progressing toward a H2’25 separation of Topgolf; capital structure assumptions for a spin are being recalibrated (less cash, modest debt at Topgolf) .

What Went Well and What Went Wrong

What Went Well
- Golf Equipment margins improved materially (segment operating margin 22.9%, +470 bps YoY), driven by cost savings, better gross margin, and a lease termination incentive in Japan; segment operating income rose to $101.6M .
- Non-GAAP operating income +21% YoY to $87.8M and Adjusted EBITDA +4% YoY to $167.3M, reflecting profitability improvements in Golf Equipment and Active Lifestyle .
- CEO on Q1 execution: “we met or beat our plan in all segments of our business,” highlighting awards for the Elyte Driver and margin initiatives started in 2024 .
What Went Wrong
- Topgolf SVS -12% weighed on segment profitability (segment operating loss -$11.9M; Topgolf Adjusted Segment EBITDA $43.9M, down $15.9M YoY) .
- Management cut Topgolf SVS and revenue guidance for FY25 and flagged ongoing softness in corporate events (3+ bay) and a price-sensitive consumer; near-term venue margins guided down 100–200 bps YoY to ~32% EBITDAR before longer-term recovery .
- Tariff headwind estimate increased to ~$25M for 2025 (from ~$5M), partly mitigated by cost actions and potential pricing over time; visibility remains limited .

Financial Results

Consolidated Trend (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Net Revenues ($USD Millions)	$1,012.9	$924.4	$1,092.3
GAAP Diluted EPS ($)	$(0.02)	$(8.23)	$0.01
Non-GAAP Diluted EPS ($)	$0.02	$(0.33)	$0.11
Adjusted EBITDA ($USD Millions)	$119.8	$101.4	$167.3

Segment Revenues (Q1 2025 vs Q1 2024)

Segment	Q1 2025 ($M)	Q1 2024 ($M)	YoY %
Topgolf	$393.7	$422.8	(6.9)%
Golf Equipment	$443.7	$449.9	(1.4)%
Active Lifestyle	$254.9	$271.5	(6.1)%
Total	$1,092.3	$1,144.2	(4.5)%

Segment Operating Income and Margins (Q1 2025 vs Q1 2024)

Segment	Q1 2025 OI ($M)	OI Margin	Q1 2024 OI ($M)	OI Margin
Topgolf	$(11.9)	(3.0)%	$2.9	0.7%
Golf Equipment	$101.6	22.9%	$82.1	18.2%
Active Lifestyle	$30.6	12.0%	$24.7	9.1%
Total Segment OI	$120.3	11.0%	$109.7	9.6%
Income from Operations (GAAP)	$66.5	—	$66.9	—

Topgolf Trends (oldest → newest)

KPI	Q3 2024	Q4 2024	Q1 2025
Topgolf Revenue ($M)	$453.2	$439.0	$393.7
Same Venue Sales (YoY)	(11)%	(8)%	(12)%
Topgolf Adjusted Segment EBITDA ($M)	$84.4	$83.5	$43.9

Other Operating KPIs (Q1 2025)

Available liquidity: $805.0M
Inventory: $653.9M (down $49.0M YoY; reclass of $75.3M Jack Wolfskin inventory to assets held for sale) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Net Revenues	FY 2025	$4.000–$4.185B	$4.000–$4.185B	Maintained
Consolidated Adjusted EBITDA	FY 2025	$415–$505M	$415–$505M	Maintained
Topgolf Revenue	FY 2025	$1.725–$1.835B	$1.680–$1.790B	Lowered
Topgolf Same Venue Sales	FY 2025	Down mid-single digits	Down 6–12%	Lowered
Topgolf Adjusted EBITDA	FY 2025	$240–$300M	$240–$300M	Maintained
Consolidated Net Revenues	Q2 2025	—	$1.075–$1.115B	New quarterly guide
Consolidated Adjusted EBITDA	Q2 2025	—	$139–$159M (incl. ~$22M hit from hedging losses, tariffs, WGT sale)	New quarterly guide
Topgolf SVS	Q2 2025	—	Down 7–12%	New quarterly guide
Jack Wolfskin treatment	FY 2025	Included in prior guide	Guidance to auto-adjust upon closing; prior embedded JW estimate €325M revenue/€12M Adj. EBITDA (H1: €115M/–€18M; H2: €210M/€30M)	Clarification

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Topgolf SVS/Value	SVS -11% in Q3; value and venue margins focus	SVS -12%; value reset (Sunday Funday, Topgolf Nights), 60/90-min reservations; traffic improving, SPV down; near-term margin pressure	Stabilizing traffic; mix/value diluting SPV near term
Corporate Events	Events steady but pressured into late 2024	3+ bay/corporate events down; softer lead volumes; flexible pricing to defend conversion	Softer near term
Tariffs & FX	FX/tariff headwinds highlighted for 2025	Tariff impact now ~$25M; partially mitigated; pricing power better in equipment	Headwind increased
Cost Actions	2024 cost programs and reorgs cited	Cost reductions enable guidance hold despite Topgolf revenue cut	Ongoing
Separation of Topgolf	Intent to separate; H2’25 targeted	H2’25 still target; spin vs sale open; revised spin capital structure (less cash, modest debt)	Active; capital plan evolving
Technology/Operations	Toptracer; operational efficiency mentions	Toast POS roll-out to ~50% venues by year-end; shorter reservations to optimize bay turns and F&B	Execution progress

Management Commentary

“We are pleased with our first quarter results as we met or beat our plan in all segments of our business… [and] started to benefit from the cost reduction and margin improvement initiatives we began implementing in 2024.” – Chip Brewer, CEO .
“Topgolf’s Q1 same venue sales were down 12%… Our #1 priority is to drive traffic growth and improve value perception… Sunday Funday… and Topgolf Nights” – Artie Starrs, CEO of Topgolf .
“This year’s unmitigated [tariff] impact would be approximately $25 million… we believe we will be able to mitigate some portion… and… pass the balance on with only a minor impact to demand” – Chip Brewer .
“We are actively pursuing… a sale, a spin or other transaction [for Topgolf]… with Q4 being more likely than Q3” – Brian Lynch, CFO .

Q&A Highlights

Topgolf value reset & margins: Management is prioritizing traffic and brand value; expects near-term venue EBITDAR margin down ~100–200 bps to ~32%, but remains confident in long-term margin potential (>35% possible) .
Events softness: Corporate events (3+ bay) are pressured by macro; offering more flexibility and market-level promotions to defend conversion; events less price-sensitive than consumer channel .
Tariff outlook: Headwind revised to ~$25M; guidance includes mitigation actions, though degree not quantified .
Golf Equipment: Gross margin up “a couple hundred bps” YoY, reflecting yield, freight, mix and efficiency gains; demand/promotional environment stable; no evidence of tariff pull-forward in orders .
Separation capital structure: Original plan ($200M cash, no funded debt at Topgolf) being revised to “less cash” and “modest” debt at Topgolf to keep RemainCo leverage manageable .

Estimates Context

Metric (Q1 2025)	S&P Global Consensus	Actual	Surprise
Revenue ($M)	1,077.1*	1,092.3	+15.2*
Primary EPS (Adj. EPS) ($)	(0.0648)*	0.11	+0.175*
EBITDA ($M)	130.2*	152.3* (S&P methodology); Company Adj. EBITDA: 167.3	+22.1* vs S&P actual; +37.1 vs consensus*

Number of estimates: EPS 8; Revenue 8*.
Note: S&P “Primary EPS” aligns with non-GAAP/adjusted EPS; S&P EBITDA definitions can differ from company-reported Adjusted EBITDA.
Values retrieved from S&P Global.*

Key Takeaways for Investors

Beat on revenue and non-GAAP EPS versus consensus with strong non-GAAP operating performance, driven by margin initiatives in Golf Equipment and Active Lifestyle .
Topgolf remains the swing factor: SVS softness persists, but value actions are boosting traffic; near-term mix effects and events pressure weigh on margins, yet full-year Topgolf Adj. EBITDA guidance was maintained via cost controls .
FY25 consolidated revenue and Adjusted EBITDA held despite higher tariff headwinds, aided by cost actions and FX; watch Q2 guide ($1.075–$1.115B revenue; $139–$159M Adj. EBITDA including ~$22M headwind) as a barometer for execution .
Strategic catalysts: Jack Wolfskin sale (expected closing late Q2/early Q3) to simplify the portfolio and bolster liquidity; Topgolf separation in H2’25 remains a key potential unlock—capital structure being recalibrated .
Short-term: Stock likely sensitive to Topgolf monthly traffic/SPV reads and events pipeline; medium-term: separation path and sustainable improvement in Topgolf SVS/margins drive multiple and SOTP debate.

Appendix: Additional Data

Q1 2025 Consolidated P&L Highlights (YoY)

Metric	Q1 2025	Q1 2024	YoY
Net Revenues ($M)	1,092.3	1,144.2	(4.5)%
Income from Operations ($M)	66.5	66.9	(0.6)%
Net Income ($M)	2.1	6.5	(67.7)%
GAAP Diluted EPS ($)	0.01	0.04	(75.0)%
Non-GAAP Diluted EPS ($)	0.11	0.08	+41.7%
Adjusted EBITDA ($M)	167.3	160.9	+4.0%

Notable One-offs / Adjustments

Q1’25 non-GAAP excludes items incl. ~$7.0M impairment on assets held for sale (Jack Wolfskin) and $11.4M restructuring/separation-related charges .
Segment OI benefited from a $12M lease termination incentive in Japan (mostly Golf Equipment) .

Citations: All company figures and commentary from Q1 2025 8‑K/press release and earnings call . Prior-quarter context from Q4 2024 and Q3 2024 press releases . Jack Wolfskin transaction details from April 10, 2025 press release .
Values retrieved from S&P Global.*

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